Chinese assets are still undervalued! Since October, the size of overseas listed Chinese stock ETFs has surged.

Since October, the size of China-focused ETFs listed overseas has increased significantly. Data shows that the total size of the five largest Chinese stock ETFs listed in the United States is $29.89 billion, an increase of $10 billion compared to the end of September. At the same time, Chinese stock ETFs listed overseas saw a net inflow of $15.16 billion in October, a figure significantly higher than the inflow in the first nine months of the year. Observers say that this development reflects increasing optimism among foreign investors towards Chinese assets, as their confidence in the outlook of the Chinese economy is further boosted by a series of measures supporting stable growth momentum. Some analysts believe that with the stability of the Chinese economy's fundamentals and a series of stimulus policies in recent months helping to stabilize and support market expectations, fund inflows will continue. Additionally, after years of decline, Chinese assets are still considered "undervalued," making them more attractive to foreign capital seeking investment returns. Furthermore, the Federal Reserve's rate-cut cycle could potentially drive an appreciation of the renminbi, which in turn could attract more foreign capital into Chinese assets. According to a report by Goldman Sachs, in the four weeks ending on October 30, $63.28 billion flowed into global stock markets, with a net inflow of $24.85 billion into the A-share market. In a report released on November 4, Goldman Sachs maintained its "buy" rating on A-shares and Hong Kong stocks, predicting a potential return of around 20% over the next 12 months for both markets.